POSTAL REGULATORY COMMISSION

[Docket Nos. MC2012-54 and CP2012-66; Order No. 1486]

New Postal Product

SUMMARY: The Commission is noticing a recently-filed Postal Service request to add Express Mail & Priority Mail Contract 10 to the competitive product list. This notice addresses procedural steps associated with the filing.

DATES:Comments are due:October 5, 2012.

ADDRESSES: Submit comments electronically via the Commission's Filing Online system athttp:ww.prc.gov.Commenters who cannot submit their views electronically should contact the person identified in theFOR FURTHER INFORMATION CONTACTportion of the preamble for advice on alternatives to electronic filings.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, at 202-789-6824.

In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30et seq.,the Postal Service filed a formal request and associated supporting information to add Express Mail & Priority Mail Contract 10 to the competitive product list.1The Postal Service asserts that Express Mail & Priority Mail Contract 10 is a competitive product “not of general applicability” within the meaning of 39 U.S.C. 3632(b)(3). Request at 1. The Request has been assigned Docket No. MC2012-54.

1Request of the United States Postal Service to Add Express Mail & Priority Mail Contract 10 to Competitive Product List and Notice of Filing (Under Seal) of Unredacted Governors' Decision, Contract, and Supporting Data, September 27, 2012 (Request).

The Postal Service contemporaneously filed a redacted contract related to the proposed new product under 39 U.S.C. 3632(b)(3) and 39 CFR 3015.5.Id.Attachment B. The instant contract has been assigned Docket No. CP2012-66.

Request.To support its Request, the Postal Service filed six attachments as follows:

• Attachment F—an application for non-public treatment of materials to maintain redacted portions of the contract and related financial information under seal.

In the Statement of Supporting Justification, Dennis R. Nicoski, Manager, Field Sales Strategy and Contracts, asserts that the contract will cover its attributable costs, make a positive contribution to covering institutional costs, and increase contribution toward the requisite 5.5 percent of the Postal Service's total institutional costs.Id.Attachment D at 1. Mr. Nicoski contends that there will be no issue of market dominant products subsidizing competitive products as a result of this contract.Id.

Related contract.The Postal Service included a redacted version of the related contract with the Request.Id.Attachment B. The contract is scheduled to become effective on the first business day following the date that the Commission issues all regulatory approvals.Id.at 2. The contract will expire 3 years from the effective date unless, among other things, either party terminates the agreement with written notice to the other party.Id.at 3.2The Postal Service represents that the contract is consistent with 39 U.S.C. 3633(a).Id.Attachment D.

2Under the terms of the contract, the customer may terminate the agreement with 90 days notice, while the Postal Service may terminate with 180 days.Id.

The Postal Service filed much of the supporting materials, including the related contract, under seal.Id.Attachment F. It maintains that the redacted portions of the contract, customer-identifying information, and related financial information should remain confidential.Id.at 3. This information includes the price structure, underlying costs and assumptions, pricing formulas, information relevant to the customer's mailing profile, and cost coverage projections.Id.The Postal Service asks the Commission to protect customer-identifying information from public disclosure indefinitely.Id.at 7.

Interested persons may submit comments on whether the Postal Service's filings in the captioned dockets are consistent with the policies of 39 U.S.C. 3632, 3633, or 3642, 39 CFR 3015.5, and 39 CFR part 3020, subpart B. Comments are due no later than October 5, 2012. The public portions of these filings can be accessed via the Commission's Web site (http://www.prc.gov).

The Commission appoints James F. Callow to serve as Public Representative in these dockets.

III. Ordering Paragraphs

It is ordered:

1. The Commission establishes Docket Nos. MC2012-54 and CP2012-66 to consider the matters raised in each docket.

2. Pursuant to 39 U.S.C. 505, James F. Callow is appointed to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in these proceedings.

3. Comments by interested persons in these proceedings are due no later than October 5, 2012.

4. The Secretary shall arrange for publication of this order in theFederal Register.